Question: response to this post. Add some open ended question at the end please. This week we will be discussing supplier risk and choosing a good
response to this post. Add some open ended question at the end please. This week we will be discussing supplier risk and choosing a good supplier is essential to the success of a company. One of the tools that monitor the health of a supplier is the Z score. The Z score helps measure a companys bankruptcy probability. A recent bankruptcy that Im sure everyone probably heard of was Hertz. The Covid-19 pandemic set Hertz back when the demand for rental cars dropped tremendously. Some rental companies were able to survive but certain companies didnt. They were eventually able to revive their company due to group of investors led by Knighthead Capital Management and Certares Management, provided the company with $5.9 billion in capital. The end of its bankruptcy allowed Hertz to shed more than $5 billion in debt, including all of the corporate debt of Hertz Europe. The rental car business is back at an all-time high, but Hertz must have contingency plans in place just in case another pandemic comes back around. Demand risk can affect transit delays and forecasting errors and the loss of customers. Sometimes mother nature is unavoidable and there must be plans set in place just in case the worst happens. Forecast errors are sometimes unavoidable due to it not being 100 percent accurate. There is no possible way for that to ever be fully accurate. You can either forecast too little or too much and be left without or have too much left over. Customer loss is sometimes unavoidable as well because you cannot satisfy everyone and they my find what they need for better prices or something thats more convenient. To help mitigate some of these risks would require good relationships with the suppliers and good open line of communications. These two things right here will give companies a chance to figure out the next move after something happens
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